Jagran Prakashan profits hit by poor revenue growth, blames GST

Jagran Prakashan reported disappointing results for the September quarter, continuing the trend of print and newspaper companies struggling in recent quarters.

Total revenue from operations fell to Rs 566.55 cr for the three months ended September, down from 591.33 cr in the previous three months.

However, compared to the same period a year ago, operating revenue was up 2.1%.

Net profit was at Rs 72.25 crores as against Rs 86.08 crores last year and Rs 88.75 cr in the previous three months.

“Roll out of GST has caused disruption which is obvious in any life changing eventm” said
CMD Mahendra Mohan Gupta.

He said investors need not get too worried about the lackluster performance this time.

“This (GST impact) being exceptional in nature , I am not inclined to read much into the numbers declared by the corporate sector for this quarter and make judgement about the future performancem” he said.

Profit before interest, tax and other non-operational expenses fell sharply as the company’s revenue could not keep pace with the rising expenses.

Total expenses, including non-cash items such as wear and tear of machinery, was up 6.5% on year at 469 cr compared to the same period last year.

Profit before interest, tax and non-operational costs fell to 110 cr from 126 cr last year and Rs 133 cr in the preceding three months.

Out of the total operating revenue of Rs 566.55 crores, 421.51 cr was contributed by advertising. This amount was up by 2.3% compared to last year..

Within this, digital Advertisement Revenue at Rs 8.46 crores, up by 33.9% from Rs 6.32 crores.

Circulation Revenues were largely flat at Rs 106.34 crores.

“I look forward to an early resolution of implementation issues and reaping the medium and long term benefits of GST which , I am confident , will make us forget short term pains and help economy bounce back to growth trajectory of pre-demonetisation era sooner than later,” Gupta added.